Quora Answer: Do Financial Advisors Have a Fiduciary Duty?

The following is my answer to a Quora question: “Do financial advisors have a fiduciary duty?”

In Singapore, yes, we do.  We represent the client’s interest to the insurer and bank.  There is a process called the Financial Health Review, and a Client Knowledge Assessment, that has to be completed before product recommendation.  Otherwise, it is product peddling, and that has legal consequences on the advisor.  Since all financial advisors, whether working with an insurer, a bank or an independent financial advisor, is registered with MAS, we all have to abide by a legal code of conduct.  This framework is known as the Balanced Scorecard (BSC).  The most severe consequences of failing in that fiduciary duty would be jail, fines and the loss of license.